Facebook to Launch DSP in Early 2016, Wants to be a Full-Stack Ad-Tech Company

What: Facebook will roll out a new demand-side platform (DSP) that executes programmatic buys using the company's "people-based" advertising methodology.

Why it matters: The product will be released in 2016’s first half and become Facebook’s fourth ad platform as the social net today has ad server (Atlas), sell-side platform (LiveRail) and ad network (Audience Network).

Facebook is about to roll out a demand-side platform (DSP) able to execute programmatic buys using the company's "people-based" advertising methodology.

The DSP product was pitched a few weeks ago by Facebook's Atlas team only to agency partners: Omnicom Group, Havas, Merkle and other target advertisers to see if they are willing to commit upwards of US$200,000 to test the product.

The product will be released in 2016’s first half and will be Facebook’s fourth ad platform as the social net today has ad server (Atlas), sell-side platform (LiveRail) and ad network (Audience Network).

Facebook suggest the new product has a stronger identity management than anything in market today, including its rival, Google's DoubleClick Bid Manager.

Since Atlas launch a year ago, Facebook DSP has looked likely as Atlas seemed capable of overturning the ad server category.However, result but its debut has not been as triumphant as the company might have hoped. Facebs were not as expected. Facebook failed to provide a tally of agencies and marketers using it, and very few customers have been identified by name.

In addition, Google has become aware of the "people-based" risk posed by its challenger since Atlas’ launch. A few months ago, Google began supporting cross-device measurement in its DoubleClick Marketing Suite, using a combination of logged-in user data and so-called probabilistic approaches, which use device attributes to link users to their various screens.

DoubleClick has also embraced first-party data matching, which has long been on offer through Facebook's Custom Audiences program and which has Google has been avoiding until now.

Facebook has then quite a challenge to level its main rival, as well as other scaled DSP solutions in the marketplace like MediaMath and Turn, if it wants to become a full-stack ad tech offering.

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With more than 2 billion active users worldwide, and 80 million monthly active users in Mexico alone, the social media giant is boosting revenue at a faster pace than expected. An important part of Facebook's efforts and investments are going into the creation of a major video advertising platform.